Gold Gains as Dollar Retreats Ahead of Fed Meeting

Gold Gains as Dollar Retreats Ahead of Fed Meeting

Gold

Gold prices rose as the dollar weakened amid expectations that the US Federal Reserve would maintain its dovish stance at its meeting this week.

By 9:08 am GMT, spot gold edged up 0.22% to $1,306.53 per ounce, while US gold futures rose 0.34% to $1,305.90 per ounce.

“Gold has been edging up and the main driver is a softening dollar,” Singapore-based CMC Markets market analyst Margaret Yang said.

At 9:11 am GMT, the US dollar index, a gauge for the greenback against a basket of six major peers, declined 0.13% to 96.3950.

The US central bank will start its Federal Open Market Committee (FOMC) two-day meeting on interest rates later in the day.

On the short term, the Fed decision and Brexit vote could boost the yellow metal, Yang said.

The US dollar is likely to move lower and in turn support gold prices, while the Brexit uncertainty boosted safe-haven demand, she added.

Concerns over the Brexit plans were further stoked as the speaker of the UK parliament ruled that Prime Minister Theresa May could not hold another vote over separation deal, unless it is submitted in a fundamentally modified form.

Amid political and financial anxieties, gold gains appeal as a hedge.

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